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AP2’s fund capital increased to SEK 352.4 billion

2018-08-21

Andra AP-fonden (AP2) reported a total return of 2.9 per cent, including costs, for the first half of 2018. Relative to the benchmark index, the return was -0.1 per cent, excluding alternative investments and costs. The net result was SEK 9.8 billion, while the Fund’s assets totalled SEK 352.4 billion by the end of the first half of 2018.

– AP2’s return exceeds the Fund’s long-term return assumption of 4.5 per cent annually. In the past ten years the Fund’s average annual real return has amounted to 6.4 per cent, says Eva Halvarsson, CEO at AP2.

– During the first quarter, the Fund implemented extensive changes to its management of foreign equities by introducing new benchmarks for both emerging markets and developed markets. Through the new indices the Fund also get exposures to a number of sustainability factors that, beyond improving the portfolio’s sustainability characteristics, also improve the expected return and risk. Among other things, the new indices entail a considerably lower carbon footprint, says Eva Halvarsson.

AP2’s assets under management totalled SEK 352.4 (336.3) billion as of 30 June 2018, against which net outflows to the national pension system were charged in an amount of SEK -3.3 (-3.7) billion.

The Fund posted a first‐half net result of SEK 9.8 (15.5) billion.

The Fund’s return on the total portfolio was 2.9 (4.8) per cent, after commission and operating expenses. Excluding these costs, the portfolio generated a return of 2.9 (4.9) per cent.

The relative return on the portfolio of quoted assets, excluding alternative investments and costs, amounted to -0.1 (0.1) per cent.

Operating expenses in terms of asset management costs continued to be low, amounting to 0.06 (0.06) per cent for the period.

Over the past ten years, the Fund has generated an average return of 7.3 per cent per year and, including costs, over the past five years, an average of 9.5 per cent per year.

Since its inception in 2001, the Fund has generated an overall return of SEK 244.5 billion, corresponding to an average annual return of 5.9 per cent, including costs.

The complete half-year report (pdf) is published on the Fund’s website at www.ap2.se

For further details, please contact Eva Halvarsson, CEO at AP2, or Ulrika Danielson, Head of Corporate Communications, on +46 31 704 29 00.